Insurance for the Smart Home: Mitigating Risk and Creating Revenue

Leading insurance companies are currently testing various models for integrating smart home services with insurance services in order to deepen customer engagement, mitigate risk, and create new revenue streams. While the insurance industry has historically used data in a backward-looking manner, IoT data streaming from devices in real-time represents an opportunity to quantify risk with greater precision.

While all opportunities show viability for the industry, mitigating risk remains both the top opportunity and value proposition for smart home and insurance players. Consumer demand for safety-related products will drive adoption independent of any insurance industry involvement, but the insurance industry can accelerate adoption by providing discounts in exchange for sharing data. It can also push technology innovation for new sensors and systems that address industry-specific needs. Partnerships between device makers and insurance companies will therefore be key to moving the market forward.